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Explain briefly the components of domestic factor income.

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Domestic factor income has been classified into three parts : 

(1) Compensation of employees : All payments by residents producers of wages and salaries to their employees in kind and in cash, social security contributions paid by employers etc. 

(2) Operating Surplus : The income earned from property and entrepreneurship is called operating surplus. They are rent, interest and profit. 

(3) Mixed income of self employed : Income of own account workers, profits and dividends of unincorporated enterprises.

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